REPORT TITLE:
Unemployment Taxes


DESCRIPTION:
Waives contributions to unemployment compensation fund for 2
years for additional employees hired by employers with less than
five employees.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            824         
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO EMPLOYMENT SECURITY CONTRIBUTIONS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 383, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "383-     Contributions waived for new employees.  (a)
 
 5 Contributions to the unemployment compensation fund that would
 
 6 otherwise be required under this chapter shall be waived for a
 
 7 period of two years with respect to contributions for new
 
 8 employees provided:
 
 9      (1)  The employer has less than five full-time employees
 
10           before hiring the new full-time employee and the new
 
11           employee increases the number of full-time employees by
 
12           one; and
 
13      (2)  The new employee holds the position for the duration of
 
14           the waiver.
 
15      (b)  The employer shall register the new employee with the
 
16 department, attesting to the eligibility for the waiver.  Any
 
17 contributions waived under this section shall be included on all
 
18 reports required by section 383-94, or rules adopted under this
 
19 chapter.
 

 
Page 2                                         824         
                                     H.B. NO.           
                                                        
                                                        

 
 1      (c)  At the end of the two-year waiver, the computation of
 
 2 the employer's reserve ratio under section 383-67, shall include
 
 3 the amount of waived contributions when calculating the
 
 4 employer's reserve balance.
 
 5      (d)  The department may adopt rules for the administration
 
 6 of this section.
 
 7      (e)  This section shall be repealed on June 30, 2001."
 
 8      SECTION 2.  New statutory material is underscored.
 
 9      SECTION 3.  This Act shall take effect on July 1, 1999.
 
10 
 
11                              INTRODUCED BY:______________________
 
12